Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q2 2023 Earnings Presentation
59 slides from Nippon Express's earnings presentation, Aug 9, 2023
Slide 1: Financial Results Presentation for Q2, Fiscal Year Ending December 2023
Financial Results Presentation for Q2, Fiscal Year Ending December 2023 August 9, 2023 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Financial Results for FY2023 (IFRS)
Financial Results for FY2023 (IFRS) Adoption of International Financial Reporting Standards (IFRS) ・The Company voluntarily adopted the International Financial Reporting Standards (IFRS) for our financial reports beginning from FY2023. As such, we prepare our financial statements in accordance with
Slide 3: Contents
Contents Financial Results Highlights (Executive Summary) III. Challenges of the Business Plan Financial Results Highlights (Executive Summary) P.3- A. Status of Business Plan 2023 Initiatives P.29- B. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.31 I. Financial Results
Slide 4: Financial Results Highlights (Executive Summary)
Financial Results Highlights (Executive Summary) ・Financial Results for Q2 FY2023 and Forecast for FY2023 Financial Results for Q2, FY2023 (IFRS) ＊Financial Results Forecast for FY2023 (IFRS) Vs. FY2022 Vs. FY2022 ¥(171.3) billion ¥(288.6) billion ➘ Revenue ¥1,131.8 billion (13.1 %) ➘ Revenue ¥2,330
Slide 5: Financial Results Highlights (Executive Summary) Overview/Digest
Financial Results Highlights (Executive Summary) Overview/Digest Financial Results for Q2, FY2023 ◼ Revenues and profit decreased in the second quarter both overseas and in Japan, mainly due to negative rebounds in overseas and international logistics businesses as the supply-demand balance in the f
Slide 6: Financial Results for Jan-Jun, FY2023
I. Financial Results for Q2, FY2023 (IFRS) A Financial Results for Jan-Jun ,FY2023 (100 million yen, %) (rounded down to 100 million yen) Current-Year Prior-Year 1H Forecast Difference Difference Difference Item Results Results YoY YoY (%) (Announced Difference (%) (Jan-Jun 2023) (Jan-Jun 2022) May
Slide 7: Japan and Overseas Results
I. Financial Results for Q2, FY2023 (IFRS) B Japan and Overseas Results (100 million yen, %) (rounded down to 100 million yen) Current-Year Results Prior-Year Results Difference Difference Segment Item (Jan-Jun 2023) (Jan-Jun 2022) YoY YoY (%) Revenues 9,091 9,869 (778) (7.9) Japan Total Segment Inc
Slide 8: Results by Reportable Segment (YoY for Jan-Jun)
I. Financial Results for Q2, FY2023 (IFRS) C Results by Reportable Segment (YoY for Jan-Jun) (100 million yen, %) (rounded down to 100 million yen) 2023 Results Prior-Year Results Difference Difference Segment Item (Jan-Jun 2023) (Jan-Jun 2022) YoY YoY (%) Revenues 6,402 7,255 (853) (11.8) Japan Seg
Slide 9: Results by Reportable Segment (vs. Previous Forecast)
I. Financial Results for Q2, FY2023 (IFRS) C Results by Reportable Segment (vs. Previous Forecast) (100 million yen, %) (rounded down to 100 million yen) 2023 Results 1H Forecast Difference Segment Item Difference (Jan-Jun 2023) (Announced May 12) (%) Revenues 6,402 6,809 (406) (6.0) Japan Segment I
Slide 10: Reference: Performance by Segment (Apr-Jun vs. Jan-Mar 2023)
I. Financial Results for Q2, FY2023 (IFRS) D Reference: Performance by Segment (Apr-Jun 2023 vs. Jan-Mar 2023) (100 million yen, %) (rounded down to 100 million yen) 2023 Results Prior-Year Results Difference Difference Segment Item (Apr-Jun 2023) (Jan-Mar 2023) YoY YoY (%) Revenues 3,104 3,297 (192
Slide 11: Breakdown of Revenues
I. Financial Results for Q2, FY2023 (IFRS) E Breakdown of Revenues and Operating Income 1) Revenues (100 million yen) ★Revenue increase 14,000 from Business 13,500 activities ⇩1,774 13,000 Impact of Impact of Impact of Ukraine 12,500 COVID-19 foreign ⇩245 ⇧7 12,000 exchange ⇧298 11,500 13,031 11,000
Slide 12: Breakdown of Operating Income
I. Financial Results for Q2, FY2023 (IFRS) ⇩84 E Breakdown of Revenues and Operating Income 2) Operating income Accounting (100 million yen) standard ★ Domestic 1,300 difference Business Impact of +546 ⬇155 Impact of Decrease in COVID-19 Overseas Decrease in 1,200 Business Real estate foreign unit f
Slide 13: Nippon Express Co., Ltd. Revenue by Business
I. Financial Results for Q2, FY2023 (IFRS) F Nippon Express Co., Ltd. Revenue by Business First Half Unit: Millions of yen, % Difference Difference (%) Business Performance Highlights Nippon Express Co., Ltd. Results Small-Lot Shipment Business Results by Business Vs FY2022 Vs FY2019*1 Vs FY2022 Vs
Slide 14: Forecast for FY2023
II. Financial Results Forecast for FY2023 (IFRS) A Forecast for FY2023 (100 million yen, %) (rounded down to 100 million yen) Previous Full-Year Prior-Year Forecast Difference Difference Difference Item Forecast Results YoY YoY (%) (Jan-Dec 2023) Difference (%) (Jan-Dec 2023) (Jan-Dec 2022) *Announc
Slide 15: Forecast for FY2023 2H
II. Financial Results Forecast for FY2023 (IFRS) B Forecast for FY2023 2H (100 million yen, %) (rounded down to 100 million yen) Prior Year 2H Forecasts 2H Forecasts Difference Difference Difference Item (Jul-Dec 2023) 2H Results YoY YoY (%) (Announced Difference (%) (Jul-Dec 2022) May 12) Revenues
Slide 16: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2023 (IFRS) C Japan and Overseas Results Forecast (100 million yen, %) (rounded down to 100 million yen) Forecast Prior-Year Results Difference Difference Segment Item (Jan-Dec 2023) (Jan-Dec 2022) YoY YoY (%) Revenues 18,513 19,852 (1,339) (6.7) Japan Total Segm
Slide 17: Forecasts by Reportable Segment (Jan-Dec)
II. Financial Results Forecast for FY2023 (IFRS) D Forecasts by Reportable Segment (Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Previous Full-Year Prior-Year Difference Difference Forecast Difference Segment Item Forecast Results Difference YoY YoY (%) *Announced (%) (Jan-Dec 202
Slide 18: Forecasts by Reportable Segment (2H, YoY, vs. Previous Forecast)
II. Financial Results Forecast for FY2023 (IFRS) E Forecasts by Reportable Segment (2H, YoY, vs. Previous Forecast) (100 million yen, %) (rounded down to 100 million yen) Previous 2H Prior Year Forecast Segment Item 2H Forecasts Difference Difference (Jan-Dec 2023) Difference 2H Results Difference (
Slide 19: Breakdown of Revenues (FY2023 Forecast)
II. Financial Results Forecast for FY2023 (IFRS) F Breakdown of Revenues and Operating Income 1) Revenues (100 million yen) 28,000 Impact of Impact of 25,000 Impact of foreign COVID 19 Ukraine exchange ⇩535 ⇧25 ⇧378 ★Revenue increase 22,000 from Business 26,186 activities ⇩2,755 23,300 19,000 ¥(288.
Slide 20: Breakdown of Operating Income (FY2023 Forecast)
II. Financial Results Forecast for FY2023 (IFRS) ⇩84 F Breakdown of Revenues and Operating Income 2) Operating income (100 million yen) Breakdown of segment profit (business profit) 1,800 Accounting standard ★ Domestic ¥(42.5) billion ¥(28.9) billion 1,700 difference Business 1,600 +267 ⬇227 1,500 O
Slide 21: Change in Business Profit by Segment
II. Financial Results Forecast for FY2023 (vs. Previous Forecast) ⇩84 G Change in Business Profit by Segment (Revised Announcement vs. Q1 Announcement) Business Profit (100 million yen) 1,300 Segment Profit (Business Profit) Security FY2023 Second Half Forecast (Revised) 527 Overseas Transportati Lo
Slide 22: Japan Segment
II. Financial Results Forecast for FY2023 (IFRS) Japan Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 3,104 3,674 (570) (15.5%) Automobile production volumes in our domestic business exceed
Slide 23: The Americas Segment
II. Financial Results Forecast for FY2023 (IFRS) The Americas Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 369 420 (51) (12.2%) Warehousing and distribution processing increased year on y
Slide 24: Europe Segment
II. Financial Results Forecast for FY2023 (IFRS) Europe Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 493 558 (64) (11.5%) Transportation demand for air export freight forwarding declined,
Slide 25: East Asia Segment
II. Financial Results Forecast for FY2023 (IFRS) East Asia Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 381 647 (265) (41.0%) Despite steady performance in warehousing and distribution pr
Slide 26: South Asia & Oceania Segment
II. Financial Results Forecast for FY2023 (IFRS) South Asia & Oceania Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 340 555 (214) (38.7%) Air export freight forwarding declined due to weak
Slide 27: Security Transportation Segment
II. Financial Results Forecast for FY2023 (IFRS) Security Transportation Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) FY2023 FY2023 FY2022 Difference Difference April-June 2023 Highlights (%) Although revenues increased due to factors including outsourcing service Revenues (100 million y
Slide 28: Heavy Haulage & Construction Segment
II. Financial Results Forecast for FY2023 (IFRS) Heavy Haulage & Construction Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 146 117 29 24.8% Both revenues and profits increased due to stea
Slide 29: Logistics Support Segment
II. Financial Results Forecast for FY2023 (IFRS) Logistics Support Segment 1 Quarterly Results for FY2023 (Apr-Jun Results) Difference FY2023 FY2023 FY2022 Difference (%) April-June 2023 Highlights Revenues (100 million yen) 996 1,002 (5) (0.6%) Revenues and profits declined due to significant decre
Slide 30: Status of Business Plan 2023 Initiatives
III. Challenges of the Business Plan Business Plan Figures (Japanese GAAP) A Status of Business Plan 2023 Initiatives (100 million yen, %) (rounded down to 100 million yen) Current-Year *Forecast Progress FY2019 Results Pro Forma Business Plan Difference Difference (%) (Vs Business Difference Differ
Slide 31: Status of Business Plan 2023 Initiatives by Segment
III. Challenges of the Business Plan Business Plan Figures (Japanese GAAP) A Status of Business Plan 2023 Initiatives (100 million yen, %) *Forecast Pro Forma (JGAAP) 2023 Business Plan Difference Difference (%) Segment Item (Jan-Jun 2023) Progress Pro Forma (JGAAP) Target (JGAAP) (Vs Plan) (Vs Plan
Slide 32: NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses
III. Challenges of the Business Plan B NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan*1 Overseas Item Revenues 2023 Jan-Jun 2022 Jan-Jun Difference 2023 Jan-Dec 2023 Jan-Jun 2022 Jan-Jun Difference 2023Jan-Dec Progress Progress Results Results (%) Targets Results Resul
Slide 33: Strategy to Enhance Domestic Businesses in Japan
III. Challenges of the Business Plan II. Improve Productivity (Continued) ◆ Automate, streamline office work C Strategy to Enhance Domestic Major Initiatives • Reduce a cumulative total of 2,150,000 hours (annualized) by the end of FY2023 through the two pillars of RPA: (1) Businesses in Japan RPA m
Slide 34: Progress in FY2023 Back Office Cost Reductions
III. Challenges of the Business Plan D Progress in FY2023 Back Office Cost Reductions (as of June 30, 2023) FY2021 FY2022 FY2023 Cumulative FY2019 FY2020 FY2023 FY2023 Enhancing Japanese Results Results Results Through FY2023 Item Results Results Cumulative Cumulative Domestic Businesses (Apr-Dec) (
Slide 35: Pursuing RPA and NX-OCR
III. Challenges of the Business Plan X Pursuing RPA and NX-OCR E To create more time for more value-added tasks, such as creative planning and sales activities. Why Adopt RPA? ⇒ Improve productivity and quality, reduce costs, and foster the potential of creating new businesses. FY2023 Target: Create
Slide 36: Impact of Employee System Reform
III. Challenges of the Business Plan F Impact of Employee System Reform (as of June 30, 2023) X Human Resource Salary/Wage System Reinforce Workplace Evaluation System System Capabilities • Employee categories • Evaluate roles • CSR, assign health and • Competency and grade • Equal labor, equal pay
Slide 37: ESG Management
III. Challenges of the Business Plan ※ G ESG Management Target CO2 emissions reductions vs. FY2017 FY2022 FY2023 FY2017 FY2019 FY2020 FY2021 Apr-Dec FY2023 Jan-Dec Jan-May (preliminary) 350,000t 414,884t 290,779t 468,069t 401,580t 404,438t (Prior-year results: (118,069t) Indicator (53,185t) (66,489t
Slide 38: Business Structure Reform Project
III. Challenges of the Business Plan H Business Structure Reform Project ~ Reform and Strengthen Businesses ~ (1) Logistics Division Reform Optimize and improve functions of SCM by customer Make a positive contribution to customers, designing optimal logistics solutions by mobilizing the collective
Slide 39: 2037 Long-Term Vision
III. Challenges of the Business Plan ~ FY2023 Numerical Targets Accelerate Reform Through a Holding Revenues, operating income (margin), net income, overseas revenues, ROE, FWD volume Company Structure A logistics company with a strong By Segment (Logistics, Heavy Haulage & Construction, Security Tr
Slide 40: M&A Materials
III. Challenges of the Business Plan M&A Materials Financial Results Presentation for Q2, 39 Fiscal Year Ending December 2023 Copyright © 2023 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 41: Return to Shareholders
IV. Return to Shareholders • ROE: 10％ A Capital Policies • Dividend payout ratio: 30% or more • Total return ratio: Over 50% (cumulative total FY2019-FY2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Total dividend Treasury share acquisition Dividend payout ratio Total return rat
Slide 42: Supplemental Documents
Supplemental Documents The information presented in this document provides data trends for each category. However, the data used is pre-close data and may differ from figures presented in our financial reports. Please be aware that this document has been produced to provide a better understanding of
Slide 43: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Jun 2023 results) (Jan-Dec 2023 forecast) Segment income (business income) +¥0.17 billion Segment income (business income) +¥0.45
Slide 44: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Jun 2023 results) (Jan-Dec 2023 forecast) Change due to Segment income (business income) ¥(0.58) billion Segment income (business
Slide 45: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Jun 2023 results) (Jan-Dec 2023 forecast) Revenues: +¥0.73 billion Revenues: +¥2.51 billion Segment income (business income): ¥(0.
Slide 46: Forwarding Results: Export Air Freight Weight Originating From Japan
Appendix 2 Forwarding Results: Export Air Freight Weight Originating From Japan Export Air Freight Weight Originating From Japan Nippon Express Export Weight Nippon Express Share (Unit: t) 30.0% FY Total:214,889 tons FY Total: 250,342 tons Q2 total: 96,283 tons 25.6% 28.0% 100,000 24.2% 24.1% 24.3%
Slide 47: Forwarding Results: Export Air Freight Forwarding
Appendix 2 Forwarding Results: Export Freight (Air Freight Forwarding) (Unit：t /chargeable) 2021 2022 2023 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Japan 89,719 90,527 82,178 85,592 348,017 84,660
Slide 48: Forwarding Results: Export Ocean Transportation
Appendix 2 Forwarding Results: Export Freight (Ocean Transportation) (Unit：TEU) 2021 2022 2023 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Japan 67,261 65,442 66,373 70,807 269,882 67,614 67,851 62,3
Slide 49: Air Export Freight Forwarding Gross Profit by Quarter
Appendix 2 Air Forwarding Results: Japan and Overseas Segment Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Quarter Japan Segment (100 million yen, %) 240 60.0% (rounded down to 100 million yen) 220 200 180 2021 Air export freight forwarding gross profit 160 34.5% 43
Slide 50: Air Export Gross Profit by Overseas Segment
Appendix 2 Air Forwarding Results: Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Overseas Segment by Quarter The Americas Segment Europe Segment 80 60.0% 80 60.0% 49.0% 50.0% 60 46.8% 60 43.8% 42.5% 48.2% 40.0% 40.0% 42.1% 46.4% 42.0% 40 40 34.3% 27.9% 24.6% 23.0% 20
Slide 51: Gross Profit per Ton and per TEU
Appendix 2 Air Forwarding Results: Japan and Overseas Segment Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Quarter Japan Segment Total 150.00 Gross Profit per Air Forwarding Ton 104.27 105.53 Gross profit per TEU in Ocean Freight Forwarding 100.00 105.44 102.42 97.9
Slide 52: Consolidated Forwarding Costs by Quarter
Appendix 2 Forwarding Results: (Consolidated) Forwarding Costs by Quarter Consolidated forwarding costs (100 million yen) (rounded down to 100 million yen) 2023 2023 2021 2021 2021 2021 2022 2022 2022 2022 Item Jan-Mar Apr-Jun Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec (IFRS) (I
Slide 53: Nippon Express Jan-Jun Revenues
Appendix 3: Nippon Express FY2023 Jan-Jun Forecasts (IFRS) A. Revenues (Unit: Millions of yen,%) Change Jan-Jun 2023 Jan-Jun 2022 % of Sales % of Sales Amount Ratio Railway utilization business 32,618 5.7 32,453 4.8 165 0.5 Automotive Small-lot shipment business 17,419 3.1 18,705 2.8 (1,285) (6.9) C
Slide 54: Nippon Express Jan-Jun Operating Expenses
Appendix 3: Nippon Express FY2023 Jan-Jun Forecasts (IFRS) B. Operating Expenses, Total Other Expenses (Unit: Millions of yen,%) Change Jan-Jun 2023 % of Jan-Jun 2022 % of Sales Sales Amount Ratio Total personnel expenses 101,383 17.9 125,540 18.6 (24,156) (19.2) Railway forwarding costs 17,479 3.1
Slide 55: Non Consolidated Profit Factors (Jan-Jun)
Appendix 3: Nippon Express FY2023 Jan-Jun Results Non Consolidated Profit Factors (IFRS) (100 million yen) (rounded down to 100 million yen) Breakdown of Operating Income *Increase and decrease in the graph is on an income basis Decrease in Impact of Increase in Other Decrease in Decrease in forward
Slide 56: Nippon Express Jan-Dec Forecast Revenues
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts (IFRS) A. Revenues (Unit: Millions of yen,%) Change 2023 2022 Change 2023 2022 % of % of Full-Year % of Full-Year % of 2H Forecasts 2H Results Amount Ratio Amount Ratio Sales Sales Forecast Sales Results Sales Railway utilization business 34,881 5.
Slide 57: Nippon Express Jan-Dec Forecast Operating Expenses
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts (IFRS) B. Operating Expenses, Total Other Expenses (Unit: Millions of yen,%) Change 2023 2022 Change 2023 2022 % of 2H Results % of Full-Year % of Full-Year % of 2H Forecasts Amount Ratio Amount Ratio Sales Sales Forecast Sales Results Sales Total
Slide 58: Non Consolidated Profit Factors (Jan-Dec Forecast)
Appendix 3: Nippon Express FY2023 Jan-Dec Forecast Non Consolidated Profit Factors (IFRS) (100 million yen) (rounded down to 100 million yen) Breakdown of Operating Income *Increase and decrease in the graph is on an income basis ¥(48.0) billion Increase in depreciation and Increase in other Decreas
Slide 59: 58 Financial
No information contained in this document is intended to solicit purchase or sale of the Company’s shares. Views, forecasts, and other forward looking statements contained in this document are based on the Company’s assumptions, judgments and beliefs in light of the information currently available t
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